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If the above code is ran from a command prompt from C:\ and with administrator privileges, it produces ‘true’ to all permissions (C:\Permissions.exe) since My_Computer_Zone (C:\) has the Full Trust permission set.
If the above code is ran from a command prompt through a loopback with administrator privileges, it should NOT produce ‘true’ for several permissions (\\127.0.0.1\C$\Permissions.exe). Permissions.exe is now running from a shared folder and hence under the Internet Zone. Specifically IsolatedStorageFilePermission. Yet in my case it does!